What is RERA? Why RERA Is Important Before Buying Property in India.
Buying a home or investing in realestate is one of the biggest decisions of your life. But for many years, buyers in India faced serious problems delayed projects, fake promises, hidden charges, and no legal protection. To fix all of this, the Government of India introduced RERA.
In this blog, we will explain what Real Estate Regulatory Authority is, how RERA works and why Real Estate Regulatory Authority is so important before you buy any property in India.
What is Real Estate Regulatory Authority?
Real Estate Regulatory Authority knows as RERA. It was established under the Real Estate Act, 2016 by the Government of India.
In simple words Real Estate Regulatory Authority is a law that protects homebuyers and makes builders more responsible. It brings trust and transparency to realestate.
Key Facts About Real Estate Regulatory Authority:
- Year Introduced : 2016 came into effect May 1, 2017.
- Applies to : Residential and commercial realestate projects.
- Who manages it : Every state has its own RERA authority.
- Each state has a separate RERA portal (e.g., UP RERA, MahaRERA, RERA Haryana)
Why Was Real Estate Regulatory Authority Introduced in India?
Before buyers understood what RERA is, the real estate sector was not properly regulated. Because of this, many buyers faced problems like:
- Project delays of 3 to 10 years.
- Builders taking money and disappearing.
- Charging for super built-up area instead of actual usable space.
- RERA guarantees buyers the right to legal action and refunds.
- Fake or unapproved projects being marketed.
How Does RERA Work?
Under RERA, every real estate project above a certain size must be registered with the state RERA authority before it can be advertised or sold. Here is how it works step by step:
| Step | Action | What it Means for Buyers |
|---|---|---|
| 1 | Builder registers project with RERA | Project is now legally verified |
| 2 | RERA verifies all approvals & documents | No fake or illegal projects can be sold |
| 3 | Project gets a RERA Registration Number | Buyers can check it on the RERA website |
| 4 | Builder must update project status regularly | Buyers get real-time construction updates |
| 5 | If builder delays or cheats, buyer can file a RERA complaint | Legal protection & compensation rights |
Why RERA Is Important Before Buying Property in India?
Now that you know what is RERA, let us understand why it is so important before you make any property purchase.
1. Full Transparency About the Project
- All project details are available on the official RERA website
- You can see approved layout plans, completion dates, and carpet area
- No more hidden information or misleading brochures
2. Protection from Fake or Illegal Projects
- Only RERA-registered projects can be advertised and sold
- Reduces risk of investing in unapproved or disputed land
- Builders cannot make false claims or fake promises
3. On-Time Delivery or Compensation
- RERA holds builders legally accountable for deadlines
If the project is delayed, you are entitled to full refund with interest
- Or you can choose to wait and get monthly compensation
4. Fair Pricing Only Pay for Carpet Area
Before, what is RERA was clear in law, builders charged you for super built-up area (walls + common spaces + your flat). RERA changed that.
- Now, pricing must be based on carpet area only the actual usable space inside your home
- This gives buyers better value for money and clear comparison between projects
5. Quality Construction Guarantee
- If any structural defect appears within 5 years of possession, builder must fix it for free.
- This gives buyers long-term peace of mind.
- Builders can no longer escape responsibility after handing over the keys.
6. Safe and Ethical Real Estate Agents
- Real estate agents must also be registered under RERA.
- Only RERA-registered agents can sell or promote properties.
This protects buyers from fraud or misinformation by middlemen.
7. Financial Protection for Your Investment
- Builders must deposit 70% of project funds in a separate escrow account.
- This money can only be used for that specific project.
- Your investment money cannot be diverted to other projects.
- Reduces the risk of builder bankruptcy or stalled projects.
RERA vs Pre-RERA: Quick Comparison
| Feature | Before RERA | After RERA |
|---|---|---|
| Project Transparency | Very Limited | Full Disclosure Required |
| Pricing | Based on Super Built-up Area | Based on Carpet Area Only |
| Project Delays | Very Common, No Penalty | Compensation / Refund Mandatory |
| Buyer Complaints | No proper system | Online RERA complaint system |
| Agent Regulation | No rules | Must be RERA registered |
| Fund Safety | Builder could misuse funds | 70% in escrow account |
| Construction Quality | No guarantee after possession | 5-year defect liability |
How to Check If a Project is RERA Registered?
Checking RERA registration is very easy and completely free. Here is how:
- Step 1: Visit your state’s RERA website (e.g., up.rera.gov.in for Uttar Pradesh)
- Step 2: Click on ‘Registered Projects’ or ‘Search Projects’
- Step 3: Enter the project name, builder name, or RERA registration number
- Step 4: Check project status, completion date, and all approvals
- Step 5: Verify that the RERA number matches what the builder is showing you
Always check RERA registration before paying any token or booking amount.
What is a RERA Complaint and How to File One?
If a builder or agent violates RERA rules, you have the right to file a complaint. Here is how:
- Visit your state’s official RERA website.
- Register yourself as a buyer / complainant.
- Fill in the complaint form with project details and your grievance.
- Upload supporting documents (agreement, payment receipts, etc.)
- Submit and get a complaint number for tracking.
RERA authorities are required to resolve complaints within 60 days. You can also approach the RERA Appellate Tribunal if unsatisfied with the order.
Common Myths About RERA Busted
| Myth | Reality |
|---|---|
| RERA only protects residential buyers | RERA covers commercial properties too |
| RERA approved means quality guaranteed | RERA registration does not guarantee quality, but gives legal recourse |
| All ongoing projects are RERA registered | Only projects registered after 2017 (or re-registered ongoing ones) are covered |
| RERA cases take years to resolve | RERA mandates resolution within 60 days |
States with Active RERA Portals in India
- Maharashtra — MahaRERA (maharera.mahaonline.gov.in)
- Uttar Pradesh — UP RERA (up.rera.gov.in)
- Haryana — RERA Haryana (haryanarera.gov.in)
- Delhi — Delhi RERA (rera.delhi.gov.in)
- Gujarat — GUJRERA (gujrera.gujarat.gov.in)
- Karnataka — RERA Karnataka (rera.karnataka.gov.in)
- Rajasthan — RERA Rajasthan (rera.rajasthan.gov.in)
You can visit your respective state RERA website to check projects in your area.
Conclusion Should You Only Buy RERA Approved Properties?
Yes, absolutely. Now that you understand what Real Estate Regulatory Authority is and how Real Estate Regulatory Authority works it should be clear that Real Estate Regulatory Authority-registered projects are always the choice. Whether you are a first-time homebuyer or a seasoned investor Real Estate Regulatory Authority gives you a lot of benefits., RERA gives you:
- Legal protection
- Transparency
- Financial safety
- Fair pricing
- Quality assurance
If you are looking to buy a property in India and want to make a informed and profitable investment iNVESTORS DIVINE is here to help you every step of the way.
At iNVESTORS DIVINE we specialize in helping buyers and investors find the Real Estate Regulatory Authority-approved real estate projects, across India. Our expert team ensures that every property we recommend is legally verified, transparently priced and offers the value for your investment.
Do not take chances with your hard-earned money. Always invest in Real Estate Regulatory Authority-registered projects.. Let Investors Divine be your trusted real estate partner.